Chevron Corporation(CVX) - Stock detail

Chevron Corporation

US
CVX
Chevron Corporation(Listing date: 06/24/1921)

Chevron Corporation was founded in Delaware in 1926. The company manages investments in subsidiaries and affiliates and provides administrative, financial, management and technical support to U.S. and international subsidiaries engaged in integrated energy and chemical operations. Upstream operations primarily include the exploration, development and production of crude oil and natural gas; processing, liquefaction, transportation and regasification related to liquefied natural gas; transportation of crude oil through major international petroleum export pipelines; transportation, storage and marketing of natural gas; and a gas-to-liquids plant. Downstream operations primarily include the refining of crude oil into petroleum products; marketing of crude oil and refined products; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and the manufacture and sale of commodity petrochemicals, industrial plastics, and fuel and lubricant additives.

AI Value AnalystHold
Overall Rating3.7/10
Generated at:2026-06-11 17:40:26
Analysis based on 5 financial reports: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price data as of 2026-06-12. Data includes balance sheet, income statement, and valuation metrics for comprehensive fundamental analysis.
Overview

Chevron Corporation (CVX) is a major integrated energy and chemicals company with a solid balance sheet but facing significant profitability pressures. The company's Q1 2026 results show revenue growth but a dramatic decline in net income, leading to high valuation multiples and a mixed fundamental outlook.

Valuation
3/10
Profitability
2/10
Financial health
6/10
Operation Advice
  • Maintain current holdings but do not add new positions at the current price of $185.82.
  • Await clearer signs of earnings stabilization or a more attractive valuation entry point before considering a buy.
  • Monitor Q2 2026 results for evidence of margin improvement and earnings recovery.

Valuation

P/E TTM
34.84
P/E LYR
19.52
P/B MRQ
2.06
P/S TTM
--
AI Analysis
  • The stock appears fully valued to slightly overvalued at $185.82, with a high TTM P/E of 34.84x reflecting recent earnings deterioration. While forward P/E of 19.52x and P/B of 2.06x are more reasonable, the valuation premium relative to current fundamental performance limits upside potential.
  • Current price is $185.82 as of 2026-06-12
  • Forward (dynamic) P/E is 19.52x
  • TTM P/E is significantly higher at 34.84x due to sharp decline in recent earnings
  • Price-to-Book (P/B) ratio is 2.06x, indicating market values company above its accounting book value
  • Price-to-Sales (P/S) ratio is 1.95x (TTM)
  • Stock has traded between $177.74 and $214.71 over the 60-day period, with recent close near the lower end
  • High TTM P/E of 34.84x is high for a cyclical energy stock
  • Current price does not appear cheap on an earnings basis given declining profitability
  • Forward P/E of 19.52x is more reasonable but requires confidence in earnings recovery
  • Based on slumping earnings and high TTM valuation, stock appears to be trading at a premium to recent fundamental performance
Valuation trend

Profitability

ROE TTM
6.13%
Net margin
4.72%
Gross margin
41.85%
Total revenue
48.61B
AI Analysis
  • Profitability is under severe pressure with Q1 2026 net income plummeting 36.86% year-over-year despite revenue growth. Margins have contracted sharply, and return metrics (ROE 6.13%, ROA 3.55%) indicate weak profit generation from the company's equity and asset base.
  • Q1 2026 revenue grew 2.09% year-over-year to $48.61B
  • Q1 2026 gross profit increased 7.06% to $20.34B
  • Q1 2026 net income attributable to shareholders plummeted by -36.86% to $2.21B
  • Severe contraction in bottom-line profitability despite top-line growth points to substantial cost inflation, operational challenges, or one-time charges
  • Q1 2026 net margin was 4.72%, a sharp decline from 7.38% in Q1 2025
  • Gross margin improved to 41.85%, suggesting pressure is coming from below-the-line expenses
  • Trailing twelve-month (TTM) Return on Equity (ROE) is 6.13%
  • Trailing twelve-month Return on Assets (ROA) is 3.55%
  • These are relatively low returns, indicating the company is not generating particularly strong profits from its equity base or asset base
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--4.01%5.57%7.26%6.13%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue47.61B92.43B142.16B189.03B48.61B

Financial health

Debt/Asset
42.54%
Current ratio
1.09
Quick ratio
0.84
Cash ratio
0.84
AI Analysis
  • The company maintains adequate financial health with a current ratio of 1.09 and moderate leverage (debt-to-asset ratio of 42.54%). While liquidity is sufficient to cover short-term obligations, the quick ratio below 1 indicates limited capacity without inventory sales.
  • Current ratio of 1.09 indicates adequate but not strong short-term liquidity
  • Quick ratio of 0.84 shows limited capacity to cover short-term obligations without relying on inventory sales
  • Current ratio is just above 1, suggesting company can cover its short-term obligations
  • Debt-to-asset ratio of 42.54% reflects a moderate level of leverage
  • This is a manageable capital structure for a capital-intensive industry like energy
  • Provides a balance between funding growth and maintaining financial flexibility
  • Does not indicate immediate solvency risks
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset41.47%41.29%40.09%40.69%42.54%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.081.001.151.151.09